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Lenovo buys back its mobile phone arm

LENOVO Group Ltd plans to use US$200 million to reacquire its mobile phone business sold to an investor group last year, China's biggest personal computer vendor said at the weekend.

The acquisition, whose price doubled Lenovo's selling price in 2008, represented a huge opportunity with the convergence of PCs and smart phones, analysts said.

Lenovo plans to acquire the entire interest of Lenovo Mobile Communication Technology Ltd from a group of investors led by the private equity arm of Legend Holdings for US$200 million in cash and shares, the company said.

"We view mobile Internet as a key growth opportunity moving forward globally," said Lenovo's chief executive Yang Yuanqing.

Lenovo started Lenovo Mobile in 2002. But Lenovo, the world's No. 4 PC vendor, sold it to focus on its US$100-million PC business last year.

Now Lenovo Mobile is the top China-brand handset maker in the domestic market but its sales still lag behind Nokia Corp and Samsung.

The convergence trend of PCs and handsets has become clear and it will create a much bigger market for PC makers, said JT Wang, chairman of Acer Inc, the world's No. 2 PC maker.


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